Tiers of Service Excellence

Have you ever experienced customer service that made you feel at ease? Or even one that made you feel frustrated at high tier? To answer that, we need to explore the term Service Excellence. The goal is to understand the art of serving customers in a way that not only meets their expectations but also fosters loyalty.

In the business world, this term is crucial to understand. A company's reputation can be determined by customer satisfaction. In fact, 56% of customers leave immediately after a single bad experience (Freshworks, 2019).

Definition of service excellence.

Essentially, it's not just about friendliness. According to Ron Kaufman, in his book "Uplifting Service," he says that service excellence is service that provides added value to customers. What does that mean? It's not enough to simply "meet expectations," there must be an extra effort to wow them.

Why is this important? Because in retail, customer experience is everything. You can have the best product, but if the service is subpar, they'll still leave.

The impact goes beyond mere satisfaction.

If executed correctly, service excellence can:

  • Become a key differentiator → when the product becomes mainstream, the customer experience is what makes the brand win.
  • Increase reputation and loyalty → happy customers = positive word of mouth = more business profits.

But if it's a dud? It can be destroyed in an instant.

Levels of service excellence.

Six Levels of Customer Service (Kaufman, 2012)

The ladder can be seen, from the bottom, which means disaster, to the top, which means legend. According to Ron Kaufman, there are six levels of customer service.

(1/6) Criminal: "Just run away."

Service? Terrible. Customer? Disappointed.

Example: Sports Direct in the UK.

Sports Direct

Customers receive the wrong item, refunds are difficult, and customer service is rude. It's just a matter of waiting for your reputation to be ruined.

(2/6) Basic: "Is that all?"

Service? Minimal, disappointing. Customer? Not angry, but also not likely to return.

Example: Walmart in the US.

Walmart

Customer service is unfriendly, lines are long, and no extra effort is made. It's just the same, just waiting for the drop-off.

(3/6) Expected: "Not bad, but so-so."

Service? Standard. Meets expectations, but nothing more. Customers? Come if there's no other option.

Example: Sephora in France.

Sephora

Notifications update orders complete, but well... that's it.

(4/6) Desired: "Well, this is it."

Service? Good, customers are satisfied. Customers? Becoming loyal.

Example: IKEA in Sweden.

IKEA

Not only sells goods, but also helps assemble them via TaskRabbit. Really committed, kudos!

(5/6) Surprising: "Wow, this is awesome, I didn't expect it."

Service? Exceeds expectations, surprises. Customers? Become die-hard fans.

Example: Lord & Taylor in the US.

Lord & Taylor

Giving away prizes to customers who post about their products on Twitter. Free!

(6/6) Unbelievable: "Legendary."

Service? Extraordinary, making customers tell everyone. Customers? Loyal fans for life.

Example: Zappos in the US.

Zappos, Inc.

Once helped a customer who lost a loved one by sending flowers and free items. God-tier service!

So, what is service excellence?

  • It's not just about being friendly, but also providing added value.
  • It's important to differentiate your business from competitors.
  • Customer expectations are always rising, so you have to keep upgrading.

In short, if service excellence works, your business will grow. If not? Just wait for customers to uninstall. That's the simple way to put it.

As Ron Kaufman said,

"Employees are the key to business success with customers. Treat them well."


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